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- Investment fraud is a type of white-collar crime that involves misrepresenting information investors use to make decisions12. It can be committed by individuals or companies, and it violates securities laws342. Investment fraudsters may use false or misleading information to deceive potential investors into buying or selling investments that are not profitable or risky534. Investment fraud can result in losses for the investors and legal consequences for the perpetrators41.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Investment fraud is a white-collar crime, and it’s when someone purposely misleads or deceives an investor in order to gain financial gain. It is illegal for any party to hide material information about investments–such as the risks involved–in order to induce investors into investing.www.secatty.com/legal-blog/what-is-investment-fra…Securities fraud, also referred to as stock or investment fraud, is a type of serious white-collar crime that can be committed in a variety of forms but primarily involves misrepresenting information investors use to make decisions. The perpetrator of the fraud can be an individual, such as a stockbroker.www.investopedia.com/terms/s/securities-fraud.aspInvestment fraud is when someone uses false or misleading information to convince others to sell or buy an investment. Recognizable scams like a Ponzi scheme are forms of investment fraud, but so are some actions by otherwise legitimate financial firms or their employees.www.silverlaw.com/what-is-investment-fraud.htmlInvestment fraud occurs when a scammer uses false or misleading information to convince an investor to make sale or purchase decisions. The illegal and deceptive practices, such as Ponzi schemes and pyramid schemes, violate securities laws and usually end in losses for the investors.www.consumernotice.org/data-protection/fraud-an…Put simply, investment fraud occurs when investment fraudsters deceive potential investors into making purchases based on false information. Legitimate companies may lie to potential investors, saying they are making a larger profit than they really are in order to secure investment by falsifying audits and other company statements.www.stpaulschambers.com/investment-fraud-case…
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